Stimulus to lift economic gloom: Deloitte

Tax cuts, record low interest rates and a pipeline of coal and iron ore exports to China are pointing to good news for Australia's economy.

The Morrison government's election win is also predicted to improve business and consumer confidence after both measures fell due to uncertainty about the May 18 result.

In its latest business outlook released on Monday, leading forecaster Deloitte Access Economics says other factors helping the economy include lower bank funding costs and a modestly lower Australian dollar.

"The drought and the downturn in housing prices are hurting the Australian economy, but the global slowdown has so far been good news for Oz," Deloitte partner Chris Richardson says.

"This is the first-ever global slowdown in which the world has actually given Australia a pay rise instead of a pay cut."

Treasurer Josh Frydenberg said changes to lending rules would free up cash for spending, while interest rates are now at one per cent.

"There's also real money flowing to Australians and to the kitchen table, to the hip pocket, as a result of the tax cuts, interest rate cuts and the other initiatives that we have taken," he told reporters in Townsville.